Page 171 - COSO Guidance

Chapter 1

GAAS — Risk Assessment and Internal

Control

Learning objectives

 Identify the requirement in generally accepted auditing standards (GAAS) to gain an understanding of
internal control as a part of risk assessment procedures when conducting an audit.

 Identify the factors that an auditor should consider when obtaining an understanding of the entity and
its environment.

 Recall the three risk assessment procedures (inquiry, analytical procedures, and observation and
inspection) and key related factors.

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